Rogue Nation Of Sports: Why Sporting Events Almost Always Face Corruption, Delays And Scams?

Sports lovers around the world are eagerly waiting for upcoming 2016 Olympics in Rio, Brazil. I am sure, it will be a spectacle and athletes from around the world will gather to celebrate the spirit of the games. The mayor of Rio is really upbeat about it and promises that the preparations for the event will be completed before time and within budgets. No matter how unrealistic that sounds, the fact that the mayor thinks its such a big deal to finish preparations within time and budget means that it is no less than a miracle. Every time a big ticket sporting event is held somewhere, it opens up a Pandora’s box. The organizers just start building up their cover stories beforehand. I am not accusing the mayor of Rio for lying but the fact is that even if that’s true, hosting the Olympics has already costed the people of his city much more than what you think. Amidst the hype and claims of fair dealings, stories of people getting displaced from the party town are quickly swept under the rug. With a city so thickly populated, violations will happen like it is nobody’s business but the environmental damages, labor malpractices, prostitution and usual racketeering around the event seem relatively small compared to the high profile corruption that will go through at the highest level of organization. It is a big real estate scam if not anything else. Somebody will be held responsible and probably be prosecuted after the games are over. As I said, it’s not happening for the first time.

Why Corruption Is Overlooked Initially

Most of us in India or those who were in India during the time of Commonwealth games 2010 would probably remember the same types of concerns being raised. What happened then is history and the CWG scam reigns as one of the biggest in India (estimated over $11 Billion) till date. Newspapers had started reporting about the irregularities about the games months before the opening but the expose was only taken seriously after the event. This is a common feature in corruption surrounding sports as organizers and governments, in their haste to prepare for the event overlook the excesses. The delays are purposely caused by contractors to squeeze more money out of the committees and nobody questions because its a matter of national pride to be hosting such an event. Only when the tsunami of activities die down after the event, the devastation that it left in it’s wake becomes apparent.

With the countries overtly concerned with their pride, the news of corruption only comes out through whistleblowing. The 2014 Winter Olympics at Sochi (Most expensive sporting event in the history), Russia is one great example of corporate cover up. Watch Alexander Gentelev’s brilliant documentary on the Sochi Olympics. You’ll get a clear picture of how big games can have monstrous appetite for misappropriation of public money (about $26 Billion in embezzlement and kickbacks). Sochi Olympics is unparalleled in corruption.

Ministry of Chaos

Unlike film industry, sports has a designated ministry in every country. The sports sector is almost as unorganized as film but the presence of national interests in sports makes it much easier to access public funds and that’s where the problem begins. There’s so much money and no one knows what to do with it. Obese, incapable ministers and bureaucrats who have almost nothing to do with sports in their entire lives are made in-charge of taking decisions and have access to virtually inexhaustible resources. It’s almost like Kassem in the cave of thieves.

What can you expect when you hear about such incidents like the International Olympic Committee de-recognizing Indian Olympic Association for more than a year due to no compliance of the charter, putting the athletes in the country into a limbo. It was a shame to see Indian players taking part at Sochi as independent participants. This however, opens up a bigger debate. Should athletes even depend on the associations? Why shouldn’t they turn professional at the very first chance they get? I support Vijender Singh (Indian boxer who turned pro this year) in his decision and find it unnecessary to coax him into staying in armature boxing just to compete at Olympics. While the corrupt sports officials play in millions of dollars of bribe money, why shouldn’t the athlete be able to earn through legitimate means?

Infrastructure is a Black-hole

Although everything is done by proper tendering and apparently background checks are done carefully, the contractors and services hired to deliver the infrastructure at these elaborate events always slip trough the filter. The stately ambitions of the nations to shock and stun the rest of the world with one mother of a sporting event has been like the ugly twin of the noble intentions behind the games. Hitler wanted to establish superiority with 1936 Olympics and the ceremonies just kept getting bigger from there. Building new and vanity sports arenas to serve as venues for these events is now an obligation. Although the construction projects for Beijing Olympics in 2008 were finished in record time, it costed about $43 Billion, way more than the $13.9 Billion dollars spent on London Olympics in 2012. This is insane and even though the infrastructure will continue to serve its purpose, I doubt that it was all that necessary. Quite intuitively the vice-mayor of Beijing was sentenced to a suspended death sentence after the games for taking bribes over $1 Million.

Here Come the Bookies

The best part of corruption is that it is highly collaborative. Everyone from TV broadcasters to sports marketers to players and their fans, practically everyone is connected. It’s all so well organized that I feel like talking back my statement about sports being unorganized. Bookmakers and match fixers form the middle strata in the corruption pyramid and at time grow up to become really influential people in the industry. India has had it’s fair share of match-fixing scandals but what comes to light is only the tip of the iceberg. There is a whole culture of betting on sports which is almost like a religion. We owe it to the British for this legacy. Gambling and match fixing were the top concerns for London Olympics 2012 as opposed to other forms of corruption and since betting is such a part and parcel of spectator experience that broadcasters just officially facilitated the bookmakers like a legitimate practice. Probably no one went to jail. Well played sir!

The Blueprint of Corruption

When 9 high ranking FIFA officials were swiftly arrested by police this year, it was a moment of introspection. Soccer World Cups are the epitome of sports glamour and celebrity worship so why shouldn’t it be the center of all media attention? This brings in sponsors and endorsements and naturally, corruption. Did you hear about your favorite sports shoe brand’s involvement in the bribery? Copa America Cup that is to be held in 2016 is supposedly in the middle of a $110 million bribery scandal already. All this makes me ask what will the volunteers get? What about the groundskeepers, staff and crew of the teams? They’ll all get minimum wages as the sports marketers and corrupt officials pull millions in to their private accounts.

We Need a New Economy For Sports

With internet and social media, sports was supposed to be benefiting the common man, the players and sports professionals but the noble intentions don’t get berth on this money train. If you really love sports then together we need to build and alternate economy for sports. Its a gigantic task. We will have to start from bottom. We need to open up the industry and put everyone on a platform where people in sports industry and spectators can interact. How can a small sports merchandising brand sponsor a local team? How can a athlete get hired for a local cable commercial? How can a sports association select potential players from local leagues without personal favors? I’ve been thinking about it and working on it. If you want to know more just get in touch.

References:

http://www.telegraph.co.uk/news/worldnews/vladimir-putin/10581829/Sochi-Olympics-Nothing-but-a-monstrous-scam-says-Kremlin-critic.html

http://www.rferl.org/content/russia-putins-games-sochi/25191988.html

http://www.telegraph.co.uk/news/worldnews/europe/russia/10469999/The-film-Russia-tried-to-block-The-threats-and-corruption-behind-Sochi-Olympics.html

http://www.telegraph.co.uk/news/worldnews/europe/russia/10414885/Sochi-chaos-behind-the-scenes-of-worlds-most-expensive-Winter-Olympics.html

http://www.sbnation.com/london-olympics-2012/2012/7/23/3177657/olympics-history-corrupt-scandal

http://www.nytimes.com/2008/10/20/sports/olympics/20beijing.html?_r=0

http://www.theguardian.com/world/2006/jun/13/china.sport

http://www.telegraph.co.uk/news/worldnews/asia/china/1522194/Corruption-scandal-hits-Beijing-Olympics.html

http://www.telegraph.co.uk/finance/newsbysector/industry/mining/11619355/BHP-Billiton-to-pay-25m-Beijing-Olympics-corruption-fine.html

https://en.wikipedia.org/wiki/Concerns_and_controversies_over_the_2010_Commonwealth_Games

http://www.theguardian.com/sport/blog/2011/oct/18/olympic-games-2012-corrutpion-threat